Amalgamation Postscript

 Published HBT 18/09/15

The votes are in and counted and the community has rejected a single council for Hawke’s Bay. Whilst many people agree change is necessary they were clearly not convinced amalgamation was the right way forward. It might have been a different result but for one official organisation, one group of people and one individual. 

The official organisation is, of course, the Local Government Commission which has made a complete hash of the whole process. It’s one standard plan for local government throughout the country was unimaginative, unrealistic and unjustified. The NO message was clear from the Far North, emphasised by Winston Peter’s bi-election win. It was also clear in Wellington where both the Wairarapa and the Hutt Valley were more than willing to combine into single councils, but the Commission’s determination to have just one council covering all of the lower North Island scuttled any chances of change. And now it has failed in Hawke’s Bay where the Commission was determined not to listen to the voices of concern and instead barged ahead. Stuart Nash’s election win was clear evidence of what was to follow. 

Including Wairoa, two hours driving from the Bay cities, was mad and shows  just how out of touch these people were. The LGC failed to provide the details necessary to help people make a decision. The promised cost savings kept shrinking and in any case were based on the Winder report for which neither the wider community nor most Councillors had any input, nor were they given any opportunity to question the author. In the case of the Hastings District Council those consulted were hand picked by the Mayor, clearly in the expectation they would kowtow to the official council position. Much was made of reducing in the number of councillors from the present 57 but the proposed plan had at least 56 and many of these were appointees and not elected. There was no democracy costing but independent estimates were the cost of democracy would increase by over $1 million a year. No management organisation was specified, no staff reductions detailed, and the likely salaries and other benefits for key staff in the new organisation were not mentioned.  

The  failure by the  LGC to release results of their telephone survey suggested they must have known it’s proposal was already dead in the water. Clearly by not reappointing Basil Morrison  and the other Commissioners, Government has signalled it’s lack of confidence in this failed team. 

The group that probably contributed most to the amalgamation defeat was, A Better Hawke’s Bay, and its successor Amalgamate Hawke’s Bay. If nothing else it’s campaign proved money is not everything. These people spent a huge but undisclosed sum pushing their agenda, but failed to appreciate the negative aspects of their campaign. The leaflets, hundreds of signs, excessive newspaper and radio advertising plus the audio assaulting mobile loud speakers left people asking just who was providing the funding, how much was being spent, and what did they hope to gain?  The slogans were seen as superficial, inappropriate, and meaningless. Even the claim that amalgamation would bring Jetstar to Hawke’s Bay had to be dropped when that outcome was achieved before the vote had even started. The claim of increased fish numbers was simply fanciful. Even the tone of much of their correspondence was a serious put off to many even though those of the opposite view used the same sort of language at times.  People expected better from those claiming to be the region’s elite.

A major mistake was the selection of speakers for the great amalgamation debate. While including Mayor Yule was predictable, Rick Barker seemed all bluster and no preparation, whilst Ngahiwi Tomoana apparently had nothing to say so he got out his guitar for a sing along. 

The last put off was Mayor Yule himself. Whilst clearly a favourite of the pro-group, whose support could be taken for granted anyway, it did not work with many undecided voters many of whom  felt it was an attempt to create a further extension to his 21 years in Local Government, plus a means to disown many of Hastings well known problems. Additionally rushing off to China in the middle of voting may not have been wise. 

One matter is clear. This was a Government initiative and since it has failed so miserably and predictably, perhaps the Crown should now compensate local councils for the costs and disruption caused by the whole sordid and unnecessary business. 

Support Jetstar

Published HBT 2 Sept 2015

Jetstar’s imminent arrival with cheaper airfares is a fantastic Christmas present. Air New Zealand are already dropping their prices in response, despite claiming for years we were not being overcharged. Some may remember Group GM Louise Struthers (HBT Feb 10 & 23) denying Air New Zealand fares were excessive. 

Of course to retain Jetstar we must support them. Diehard Air New Zealand supporters should remember cheaper airfares have only arrived because of the new kid on the block, whilst those who suddenly find air travel is affordable, should remember last time they went by bus because the airfares were so high. 

Lower fares will grow the market for both airlines and whilst the national carrier might earn a bit less, they recently announced a $330m record profit. Air New Zealand is a ruthless organisation that has buried many competitors including Origin Pacific and Trans Air. They have also unceremoniously dumped unwanted destinations such as Westport and Whakatane, and would do so to us if it suited them. We owe them nothing and need to understand their only loyalty is to themselves.  

CBD in decline

Published HBT 31/08/15

The Hastings CBD has all the hallmarks of serious decline and a Mayoral symposium has been organised to explore future options.  However history suggests various Hastings Councils have in fact been major contributors to the CBD’s decline. One wonders if things will be any different this time. Recently the 300 Heretaunga West block has had up to 14 empty shops, and whilst there as been some recovery this improvement may not be permanent. Of course city centres elsewhere are facing similar difficulties. 

Almost 40 years ago, in 1976, the old Hastings City Council implemented the infamous CBD ring road traffic system which was supposed to solve both congestion and parking problems, but Instead proved highly confusing, especially for visitors. Gary McCormack once joked on TV that food parcels were being sent in to sustain motorists who were unable to escape the system. A decade and a half later, council wisely abandoned the ring road and replaced it with one way streets plus a pedestrian mall in the 100 East block. This simply replaced one unsatisfactory system with another, so finally in 1999 Council was forced to reinstate the two way streets, and open up the East Mall to traffic. 

In recent times there have been other proposals for reinvigorating the CBD such as shifting the railway station into the centre of town, though this was abandoned when an astute local pointed out the intended passenger train was significantly longer than the space available, meaning passengers would be alighting straight into the water feature. Another idea was to remove the water feature and replace it with a through road to connect the East and West sides of Heretaunga Street, effectively returning to the same layout as had existed 40 years earlier. Council street upgrades, whilst generally supported by retailers, have undoubtably been very damaging to their businesses. Its doubtful any extra shoppers have been attracted to the CBD  as a result of the approximately two million dollars spent. 

Without doubt the most significant council inspired changes have been the development of two new large retail zones, the K-Mart Plaza, and Nelson Park. There is nothing intrinsically wrong with providing for big box retailing because it is clear that is what many shoppers want. Actually, Hastings has been successful in attracting big names including K-Mart, Harvey Norman and Spotlight, but such a significant expansion of retailing was clearly going to impact on the fortunes of the original CBD shopping zone. Population growth in Hawke’s Bay is not great, and incomes are increasing quite slowly, so there is no obvious source of new money to replace that being syphoned off by the new bulk retailers. 

Obviously, online shopping is also putting pressures on traditional CBD retailing but again this should have been anticipated because Amazon and eBay have been around since 1995, and even Trademe started business in 1999. The new 5 star Havelock North Hotel will also incorporate more retail space.

A near complete collapse of the CBD may have been prevented only by Farmers relocating to Heretaunga St and the Wallace Development Company upgrades of the former Power Board building and Woolworth’s site. The new Civic Assist staff have also helped re-establish a more congenial environment  for shoppers after behavioural issues drove many elsewhere. . 

As most large retailers offer free parking, the CBD is disadvantaged by parking fees and fines. The 60 minute limit on meters is simply not enough for many shoppers. Of course messing up parking is a Hastings Council speciality. Many people will remember that the present Mayor and Deputy acting on the advice of external experts, supported selling  off council parking land in Havelock North, then tried to introduce meters because of the resulting shortage of parking.

Of course amalgamation will be an unmitigated disaster for Hastings. If $10 million a year is to be saved, at least 100 and as many as 150 council jobs will have go. With the new super council being based in Napier many jobs may be lost from Hastings. Together with relocations Hastings could lose perhaps 300 jobs, plus tens of millions of dollars in spending. Hasting retailers would be wise to have exit plans for their businesses in the event amalgamation goes ahead. 

Hastings was once the retail capital of Hawke’s Bay and back in the 1960’s trainloads of people would arrive from Napier to do their Christmas shopping. Its unlikely such days will ever return so we need to make absolutely sure shoppers can be enticed back to the CBD before any commitment is made to spend ratepayers money. Advisors are all very well, but they are not accountable and they have not always served council well in the past.